Applied Global Technologies Generates Another Record Quarter as Organizations Turn to IP Technology; Revenue up 80% over the Same Period Last Year.

ROCKLEDGE, Fla. -- Applied Global Technologies, proven experts in IP collaboration technologies and solutions, announces record second quarter 2004 revenue of $8.8M, an increase over the comparable period of 2003 by 80%. In addition, the sequential growth in Q2 over Q1 this year was 47%.

"We have assembled an extremely talented and dedicated team of personnel that have enabled our success," stated Michael Valletutti, Chairman and Chief Executive Officer, Applied Global Technologies. "Our people, partners and processes, supplemented with our unique ability to provide value through software development, will keep AGT on the leading edge of technology advancement as we elevate our position as 'IP Collaboration Experts.' Our proven experience of reducing costs, while increasing effectiveness and productivity, has led to recognition as a premier provider of the full suite of managed services."

AGT's managed services and technology solutions were highlighted in second quarter with awards from both of the leading manufacturers of conferencing hardware, Polycom and TANDBERG. Both honored AGT with their respective "Solution of the Year" awards.

"We are proud to have received the awards from Polycom and TANDBERG, the Unit Coin from the U.S. Third Army in Kuwait and continued high rankings in customer satisfaction during the past quarter," added Valletutti. "This attention to customer service, innovative technology solutions and our unique Managed Services methodology have resulted in recent significant wins for our products and services."

At the end of Q2 and beginning of Q3, AGT was awarded three new orders for its Technology Management Services with annual revenues totaling in excess of $3M. These orders were in each of AGT's federal, state & local and commercial sectors.

"The Company continues to diversify into the state & local and commercial markets, while maintaining focus on its core federal sector business," commented Harry Ericson, Chief Financial Officer, Applied Global Technologies. "Recent wins in our managed service business and contracts for new products, will increase the recurring revenue stream to over 30% of total revenue. This revenue base combined with our growing AV integration services business will increase returns to Company shareholders and employees. Employees control over 90% of the Company's stock and therefore have a vested interest in the success of the business."

In addition to its offering of a full suite of managed services, AGT has become a leader in the design, programming, installation and maintenance of rich multimedia training rooms, Board conference rooms and auditoriums. This A/V Integration Division of AGT performed recent installations for the U.S. Army in Kuwait. This Kuwait project resulted in receipt of the coveted U.S. Army "Unit Coin" award. AGT's AV integration business is up over 90% from 2003.

Reviewing the first six months of 2004, AGT revenue was $14.7M, up over 70% from the first half of 2003. EBITDA (Earnings before interest, taxes, depreciation and amortization) was $0.5M after investment in R&D of approximately 3% of revenue. Revenue from product development will begin to be recognized in Q3 with initiation of work on an order of $2.8M for the Company's PERSPECTIVE(TM) product.

"The Company has a strong financial foundation and is positioned to continue to fund growth and reinvestment in the business," added Ericson.

About Applied Global Technologies(R)

Applied Global Technologies(R) offers its customers proven expertise in IP collaboration with the mission to transform companies from buyers of technology into users of technology. Applied Global takes the enterprise vision of fully integrated IP networks and applies it as an effective, ROI-centered solution for today's progressive and agile businesses.

In addition to its work in the commercial marketplace, the eleven-year old private corporation provides conferencing solutions to the Pentagon, branches of the US Military and civilian agencies, as well as numerous federal and state government facilities. The company's continued advancement in communications is being felt around the world.

AGT partners with those companies that bring value to its customers. Applied Global's current partners include: Anteon, Booz Allen Hamilton, EDS, Glowpoint, Infonet, Lockheed Martin, Polycom, Radvision, Raytheon, SAIC, Sprint, SRA International, TANDBERG, VCON, and Verizon.

The company recently released a new service known as PERSPECTIVE(TM). It is a multimedia gateway - an interactive video and web interface service which allows you to centrally access workplace tools available on any IP network and share those tools in real-time with anyone you want regardless of communication device. It is the ultimate collaboration service.

Applied Global's international headquarters is located in Rockledge, FL with field support offices in Atlanta, Chicago, Dallas, Honolulu, Okinawa, Ottawa, Seattle, San Francisco, Virginia Beach, and Washington, DC.